Ethical, Fraud, and Legal Issues for Accountants

Write the answers to the following questions in your own words.

1. Give suggestions on how the fraud at WorldCom could have been prevented? Think about what people at the company did, the company culture, and any roles others played in the fraud.

2. Six WorldCom employees were convicted in the case. Which of these do you believe is the most responsible for the fraud? Why?

3. The audit form of Arthur Andersen claimed they followed Generally Accepted Auditing Standards and were misled by WorldCom executives, yet they settled the investor lawsuits and two partners were sanctioned.